Key Highlights

  • Gresham House Income & Growth 2 VCT plc (LSE:GHV2) is listed on the London Stock Exchange Main Market and yields 9.03%.
  • A second Interim Dividend of 2.00p per share for the year to 30 September 2026 was paid on 30 October 2026.
  • NAV per share was 49.76p at 31 March 2026, with net Assets of £160.80m.
  • A joint offer with Gresham House Income & Growth VCT raised gross proceeds of £24.32m.
  • VCT dividends are tax-free for qualifying UK investors.
  • The company was formerly known as Mobeus Income & Growth VCT.

Overview of Gresham House Income & Growth 2 VCT

Gresham House Income & Growth 2 VCT plc (LSE:GHV2) is a Venture Capital trust advised by Gresham House Asset Management. It invests in a portfolio of growing UK private companies. Its objective is to provide investors with a regular income stream through tax-free dividends generated from both income and capital returns.

The 9.03% Yield should be understood in context. VCT dividends are funded largely from realised gains when portfolio companies are sold, not from recurring Earnings like a typical company. That makes the payout lumpier but potentially generous over time.

Latest Results

For the six months ended 31 March 2026, GHV2 reported net assets of £160.80m and NAV per share of 49.76p. NAV was 50.23p at 28 February 2026 before a dividend adjusted it to 48.23p. The trust's long-term share price total return over ten years has been strong relative to the wider VCT sector.

The joint offer for subscription launched in February 2026 with Gresham House Income & Growth VCT was well supported, raising gross proceeds of £24.32m for GHV2. It was launched ahead of a reduction in VCT income tax relief.

Dividend Record

GHV2 declared an interim dividend in March 2026 and a second interim dividend of 2.00p per share in respect of the year ending 30 September 2026, paid on 30 October 2026. The company also offers a dividend Investment scheme, allowing shareholders to reinvest dividends into new shares.

In 2025, the trust paid 4p per share. The 2026 payments have stepped up, supported by realisations from the portfolio.

How VCT Dividends Are Funded

Unlike an operating company, a VCT funds dividends from realised profits and income. When the manager sells a portfolio company at a gain, the board can distribute that profit. VCTs also aim to keep NAV broadly stable over time, so dividends are often paid at a target percentage of NAV.

A dividend of around 4p to 6p a year on a NAV near 50p represents roughly 8% to 12% of NAV. Sustaining that requires steady exits and investment returns.

Cash Flows and Fundraising

New money raised through the share offer gives the manager capital to invest in new companies and supports Liquidity for Buybacks and dividends. Fundraising strength also signals investor confidence in the manager.

Risks

The key risks are weaker exit markets for private companies, valuation declines in the portfolio and changes to VCT tax relief. If realisations slow, the board may reduce dividends to protect NAV. VCT shares also trade at a discount to NAV and are less liquid than mainstream shares.

Market Sentiment

Commentary across UK investment platforms highlights Gresham House's strong VCT track record and the popularity of its offers. Investors value the tax-free income, particularly after changes to UK dividend and pension allowances.

Tax Relief and Investor Appeal

Venture capital trusts offer qualifying UK investors tax-free dividends and, for new subscriptions, upfront income tax relief, subject to holding the shares for the required period. These benefits make the effective yield on LSE:GHV2 even higher for eligible taxpayers. The reduction in income tax relief that prompted the early 2026 fundraising shows how sensitive the sector is to policy. Even so, Demand for Gresham House offers remained strong, which supports the manager's ability to keep investing and paying dividends. Investors should remember that VCTs invest in small, unquoted companies, which are higher risk and less liquid than listed shares.

What Investors Should Watch

Investors should watch the annual results for the year ending 30 September 2026, NAV trends, the pace of portfolio exits and future fundraising.

Is the 9.03% Yield Sustainable?

GHV2's dividend is sustainable as long as the portfolio continues to generate realisations and NAV holds up. The trust has a long record of payouts, fresh capital and an experienced manager. However, VCT dividends can vary year to year. LSE:GHV2 suits investors seeking tax-efficient income who accept variability.